Small businesses face particular vulnerabilities that larger firms may not deal with, particularly since they operate with less resources. As a result, business insurance provides these companies with protection against unforeseen mishaps and lawsuits to prevent damages and losses. In fact, many financial support systems have set about standards for businesses to carry essential insurance policies to safeguard their investments.
Purpose of Insurance
Business insurance ultimately transfers risk to protect company finances. Through an agreement with an insurer, businesses agree to pay set premium amounts in exchange for the protection provided. For instance, general liability, commercial property damages, vehicle accidents and thefts, professional liability and worker’s compensation. In the event of covered losses, insurers compensate businesses according to specific policy agreements.
General Liability
General liability coverage offers business protection from claims of negligence, product defects, property damage and injuries. For example, products that cause illness or injury, or injuries sustained through an accident while on the property of a business. Companies found liable in lawsuits are afforded the protection of general liability policies that cover medical, legal, loss of income and other expenses.
Fleet Car Insurance
One of the more specialty business insurances covers costs associated with vehicles that companies use in their day to day business operations. For instance, when businesses use vehicles for making deliveries and traveling to call on clients. Often, executives are provided with personal company cars as part of their compensation package. Regardless of how a vehicle is utilized, when there are several being operated simultaneously in a company, it is considered to be a commercial fleet. As with general vehicle insurance, this type of insurance is necessary to cover theft, accidents and mishaps that may occur while employees are operating company vehicles. Otherwise, the business may be held liable for damages.
Property Damage
Business commercial property insurance is designed to compensate for damages that may result from peril or loss due to vandalism, fire or hail. Catastrophic losses that are caused by floods, wind and earthquakes may also apply. In addition to business structures, property includes furniture and furnishings, equipment, files, product inventory, materials, office supplies and other business operations necessities.
Professional Liability
Companies that offer legal, medical, design, consulting and other kinds of services are urged to carry professional liability policies, otherwise known as errors and omissions insurance. Any legal personnel, whether it’s a Florida or South Carolina personal injury lawyer knows that when lawsuits are filed claiming misrepresentation, fraud, injury or property damage, that professional liability insurance is designed to cover the costs associated with investigations, legal and court costs, property damage and other expenses. Therefore, their suggestion to any corporation would be to get the proper coverage.
Worker’s Compensation
Most all states have a form of worker’s compensation insurance in place to cover injuries and illnesses that employees may sustain during their course of employment. These policies provide coverage for income lost and medical bills as a result of employee work related illness or injury. Payment rates and policy amounts according to type of employee are regulated by each individual state government.
Other Business Insurance
Other kinds of business insurance provide protection with regard to business interruptions that may occur due to criminal and other unforeseen events. Umbrella policies are meant to compensate beyond liability limits of other kinds of coverage. For instance, group health, disability and long term care are sometimes available through employee benefit programs. The many options that are available for businesses make it easier for them to protect their financial standing and operations.
There is no doubt that business insurance is vital for every business. Small businesses in particular without coverage may otherwise face financial hardships, ruin and failure due to loss of capital to cover these risks.
Entrepreneur Nickey Williams knows what it takes for a business to stay a float, and for that reason making sure to inform the masses of the pitfalls associated with business ventures is her goal. South Carolina personal injury lawyer, Gary Christmas knows it takes strong legal backing to help safe guard businesses and will gladly work along side any establishment that needs legal security.